Trump Executive Order to Cut U.S. Prescription Drug Prices 30-80%

President Donald Trump announced plans to sign an executive order aimed at significantly reducing prescription drug prices in the United States by 30 to 80 percent. This initiative focuses on addressing the disparity in drug pricing between the U.S. and other nations by implementing a "Most Favored Nation's Policy."

Under this policy, the U.S. would pay no more than the lowest price paid by any other country for the same pharmaceutical products. Trump has recently taken several regulatory actions to lower drug costs, including rescinding former President Biden's executive order on drug pricing and encouraging House Republicans to mandate lower drug prices for Medicaid.

The executive order intends to leverage competition and market forces rather than relying solely on mandates to reduce costs. Trump highlighted the issue of higher drug prices in the U.S. compared to global rates, attributing long-standing cost differences to pharmaceutical companies' pricing practices.

The policy aims to equalize drug prices globally, prioritizing domestic affordability. Industry experts and some critics acknowledge the complexity of drug pricing but note legal and regulatory constraints on implementing such broad policies, especially regarding private sector pricing control without congressional action.

This announcement has generated mixed reactions, with some industry voices recognizing potential savings while skepticism remains about enforcement and actual impact. The executive order's implementation details and its effects on the private insurance market and pharmaceutical industry remain to be clarified.